The Importance of Logistics in Business

The emergence of globalisation and intense competition at present makes it challenging for businesses to stand out and operate at full capacity. For businesses to operate successfully within the dynamic industries of today, logistics proves to be one of the most influential sectors. From cutting down company expenses to meeting the customised demands of each of your customers, we, here at Rich Resources Logistics Pte Ltd will help your business achieve the very best results.


Importance of Logistics Management in your Business

A renowned online Asian transport equity guide, Crucial Perspective released a data on May, 2017 that the global container shipping trade growth exceeded over double the expected rate to 7% along with the global air cargo traffic growth of 10% from 4% due to logistics management. This is why the Indian Institute of Materials Management recommends 100 percent core competence in logistics management for a business to operate successfully.

If you want to enhance the management practices of your business, you’ll need to rely on logistics. One of the top logistics blogs, PLS LogisticsPLS Logistics explained that logistics management helps businesses design products or services of superior value for target audiences. Furthermore, they elaborated that logistics management will strongly support your product or service development process to run smoothly through the proper implementation of your production strategy. You will be able to control the inflow, outflow and storage of your developed goods and services comprehensively through logistics management.


IKEA occupies a well-regarded position on the list of Forbes’ World’s Most Valuable Brands because of its unique and efficient management of inventories through logistics. It is recognised for its in-store logistical management of reorganising products, based on the expert analysis at the Tradegecko. IKEA uses logistics management here, to allocate two managers. One manager is employed for in-store logistics and the other for material handling logistics. The two managers monitor, record, organise and differentiate quality assured products to exact designated locations. This logistics management helps them maintain the distinct quality of the products for maximum customer satisfaction.

How Logistics can Help Cut Down Financial Expenses of a Business

You can help your business be cost-efficient by applying logistical methods. This will be advantageous for you in situations where you might want to utilise additional finances to expand or to pay off business debts.

Tradegecko mentions the utilisation of logistics by IKEA to reduce business operation costs without compromising on the quality, delivery and other superior attributes of its products. The company uses ‘Cost-Per-Touch’ inventory management technique to incur low business costs. This strategy helps IKEA make sure that they don’t need to incur the business costs usually incurred when having each product go through an ordering process, shipping process, then, warehousing process and finally the delivery process. In this case, IKEA allows its customers to select their desirable items and retrieve those back to their homes at a reasonable price.

Importance of Logistics in Business for Customer Retention

Logistical strategies can help you focus on increasing the number of customers as well as gaining customer loyalty. The most recent Third-Party Logistics Study published a report that indicated 93% of the third-party logistics providers and 73% of the transporters agreed that efficient logistics helped them enhance their marketing performance through innovative ways. Furthermore, the study displayed that 86% of the transporters and 98% of the logistics providers were able to enhance their customer service through logistical strategies in 2017. In 2004, American Biophysics was able to boost its revenue by 40% as it upgraded its logistics to make faster deliveries with minimised errors.


Gorgeous Shop, a retailer of cosmetics and hair care products, concentrated on increasing customer retention by partnering with MetaPack, a provider of eCommerce delivery. Their integration reportedly led to a major success because customers felt largely satisfied with the prompt delivery of reliable and constantly available ranges of products at an economical price. Gorgeous Shop recently announced its success with an amazing return of 60% customers to their website after making their very first purchase.

Impact of Logistics in your Firm’s Information Technology Department

The combination of logistics and IT in your business will help you gain a competitive advantage in the industry. The reason behind your competitive advantage would be due to large collections of data that will help you form the best strategies for business success. DHL Customer Solutions & Innovation’s 2014 report indicated significant gains in excellent customer experience, efficiency in operation and the formation of appropriate business models.

DELL was one of the very first companies to realise the advantages of combining logistics and IT. In fact, DELL based their entire operation and beat all its competitors amazingly. They communicated online through the internet to collect customised orders from their customers directly. This information related to the order was then discussed with their suppliers so the supply could be forecasted more accurately and delivered closely to the customers’ requirements.

Our company, Rich Resources is a specialist provider of customised cold chain logistics. We have successfully assisted several businesses over the last 5 years with our team of 24/7 standby experts who provide solutions at affordable fees.